Correlation Between AC MOORE and Advance Auto

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Can any of the company-specific risk be diversified away by investing in both AC MOORE and Advance Auto at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AC MOORE and Advance Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AC MOORE ARTS and Advance Auto Parts, you can compare the effects of market volatilities on AC MOORE and Advance Auto and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AC MOORE with a short position of Advance Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC MOORE and Advance Auto.

Diversification Opportunities for AC MOORE and Advance Auto

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ACMR1 and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AC MOORE ARTS and Advance Auto Parts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Auto Parts and AC MOORE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AC MOORE ARTS are associated (or correlated) with Advance Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Auto Parts has no effect on the direction of AC MOORE i.e., AC MOORE and Advance Auto go up and down completely randomly.

Pair Corralation between AC MOORE and Advance Auto

If you would invest (100.00)  in AC MOORE ARTS on February 21, 2022 and sell it today you would earn a total of  100.00  from holding AC MOORE ARTS or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AC MOORE ARTS  vs.  Advance Auto Parts

 Performance (%) 
      Timeline 
AC MOORE ARTS 
ACMR1 Performance
0 of 100
Over the last 90 days AC MOORE ARTS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AC MOORE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Advance Auto Parts 
Advance Performance
0 of 100
Over the last 90 days Advance Auto Parts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm insiders.

Advance Price Channel

AC MOORE and Advance Auto Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with AC MOORE and Advance Auto

The main advantage of trading using opposite AC MOORE and Advance Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC MOORE position performs unexpectedly, Advance Auto can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advance Auto will offset losses from the drop in Advance Auto's long position.
The idea behind AC MOORE ARTS and Advance Auto Parts pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Advance Auto Parts

Pair trading matchups for Advance Auto

Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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